Loews Hotels to Build Third Luxury Hotel in Arlington: 500-Room Tower to Replace Sheraton by 2026

ARLINGTON, Texas — The landscape of Arlington’s Entertainment District is set for another major transformation. The Arlington City Council has approved ambitious plans for Loews Hotels to construct a third luxury hotel, a $410 million project that will replace the existing Sheraton Arlington Hotel.

Project C: A New 500-Room Destination

The new development, referred to in planning documents as “Project C,” involves the demolition of the current Sheraton hotel, which is scheduled to occur by September 2026. In its place, Loews will rise a massive 500-room hotel north of Choctaw Stadium.

Key features of the new property include:

  • 500 luxury guest rooms
  • 25,000 square feet of event and meeting space
  • A 735-space parking garage, which will be owned by the City of Arlington

Economic Benefits and Employment Opportunities

The project is not just a cosmetic upgrade; it is a strategic economic engine for the city.

  • Boosting Major Event Bids: The new hotel will specifically help Arlington compete for and secure “Major Special Events,” including the NFL Super Bowl, NCAA Final Four, NBA All-Star Game, and national political conventions. Increasing the inventory of luxury rooms is often a requirement for hosting these global events.
  • City-Owned Infrastructure: The new parking garage will serve a dual purpose, connecting to Choctaw Stadium and providing critical parking for the Arlington Museum of Art and the future National Medal of Honor Museum.
  • Employment Goals: While total permanent staffing numbers are yet to be finalized, the project carries significant employment mandates. Loews has agreed that 30% of hires for the hotel’s development, procurement, and construction must be minority- and women-owned businesses (MWBE), ensuring the economic benefits are shared across the diverse local community.

Timeline and Incentives

Construction is expected to conclude within three years of the start date. To facilitate this major addition to the city’s skyline, Loews will receive approximately $40 million in incentives. Funding for the parking structure includes $20 million from the city (paid over eight years) and $15 million from the Arlington Economic Development Corporation (paid over seven years), plus an additional $5 million for site improvements.

Loews Hotels has been a pivotal partner in the district’s growth. This new project follows the successful 2019 opening of the Live! by Loews hotel and the February 2024 debut of the 888-room Loews Arlington Hotel and Convention Center

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